Visiting office.live.com lets you create new documents, spreadsheets and presentations without having the desktop program installed on your computer, or even paying for it.

As well as seeking to knock Google Docs off its perch, Microsoft has also added a live document collaboration tool, called OneNote, to rival Google Wave and allow users to work within the same document in real time.

Account holders will get an meaty storage space of 25GB, which should keep you going for a while with most word docs coming in below 50KB.